Consumer prices increased 0.2% month-over-month in July, the Bureau of Labor Statistics said on Wednesday. On an annualized rate, inflation ticked up 2.9%. Economists polled by Dow Jones expected a 0.2% increase from the prior month and a 3% gain year-over-year.
So-called core inflation, which strips out food and energy from the headline number, advanced 0.2% on the month, also in line with expectations.
Market Snapshot
At 8:44 a.m. ET, Dow E-minis were down 9 points, or 0.02%, S&P 500 E-minis were up 7 points, or 0.13% and Nasdaq 100 E-minis were up 34.5 points, or 0.18%.
Pre-Market Movers
Kellanova stock was up 8% in premarket trading. The privately held candy company Mars has agreed toacquirethe food maker for $83.50 per share in cash in a nearly $36 billion deal.
Flutter Entertainment shares rose 6.8% after the online betting and gambling company beat earnings expectations,led by strong growthin its U.S. business.
Peloton stock soared 5.6% to $3.25. On Tuesday, the at-home fitness company and Google Fitbit announced a multiyear, multicountry partnership to offer a slate of Peloton classes to Fitbit Premium users beginning in early September.
Ouster stock tumbled 16% after the maker of light-detection and ranging sensors said it forecasts third-quarter revenue between $27 million and $29 million, lower than the $30.2 million analysts had penciled in before the quarterly report. Economic challenges are prompting some customer to push back projects, “which may soften near-term growth,” CEO Angus Pacala said on a call to discuss its earnings.
UBS shares gained 3% after the Swiss bank reported a net profit of $1.1 billion, nearly double the $552.4 million consensus call among analysts tracked by FactSet.
Nvidia shares edged 1.6% higher. Thechip makerseems to be continuing the market’s ‘everything rally’ from Tuesday, where the stock market rose across the board, with tech stocks leading the gain.
Southwest Airlines stock rose 1.3%. Activist investor Elliott Investment Management said Tuesday that itplans to nominate10 “independent, highly qualified candidates” for seats on the Dallas-based airline’s 15-person board.
Starbucks stock dipped 0.3%, while Chipotle Mexican Grill shares rose 0.9%. On Tuesday, the coffee chainsaidthat it had named the burrito maker’s Chief Executive Officer Brian Niccol as its new CEO with a start date of Sept. 9.
Market News
Tencent's Q2 revenue up 8% on recovery in gaming business
China's Tencent Holdings reported an 8% rise in second-quarter revenue on Wednesday, driven by a recovery in its gaming business after a launch of a new mobile game in May that got off to a strong start.
The world's largest video game company and operator of the WeChat messaging platform said revenue reached 161.12 billion yuan ($22.5 billion) in the quarter ended June 30. Analysts had expected revenue of 160.77 billion yuan, according to LSEG data.
Tencent's core gaming business had faced headwinds, with China revenue declining for two consecutive quarters since the fourth quarter of last year, partly hit by successful rollouts of rival games from competitors.
Apple supplier Foxconn's profit beats forecasts as it rides AI boom
Apple supplier Foxconn on Wednesday surpassed expectations with a 6% rise in quarterly net profit, driven by a boom in demand for AI servers, and stood by its forecast for full-year revenue to grow significantly.
The world's largest contract electronics maker said it expected robust demand for artificial intelligence servers to continue to boost growth into the fourth quarter.
Foxconn said the development schedule for AI semiconductor leader Nvidia's (NVDA.O), opens new tab GB200 chip was on track, adding product delivery will start in the fourth quarter in small volumes, which would rise in early 2025.
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